Home India Airtel’s Payment Bank, India first Payment Bank rolls out as pilot project in Rajasthan

Airtel’s Payment Bank, India first Payment Bank rolls out as pilot project in Rajasthan

4 min read
Airtel’s Payment Bank, India first Payment Bank rolls out as pilot project in Rajasthan

News about Airtel launching the first Payment Bank are floating around all over the internet. With an interest of 7.25% per year on accounts, quick and paperless account opening using Aadhaar based E-KYC, their might be a few more benefits available for the customers. Though these benefits are hard to be realized since Airtel hasn’t really launched the Payment Bank as a full scale integration, but as a pilot project in Rajasthan (for now). Airtel’s retail outlets will be doubling up as branches of the Airtel bank enabling an account opening, deposit or withdraw money, all at the Airtel stores.

But what exactly is Payment Bank!? Well one big difference from of these from digital wallets is that the payments bank can pay interest, and can choose to offer ATM and debit cards(FYI Airtel won’t be issuing any cards just yet, this being a pilot project).Also Payments banks are not allowed to offer loans, or credit cards. These payments banks can also invest the money deposited in government securities only.

A few pointer that will help Airtel to get into this market are:

  • Airtel mobile number will be used as customer’s account number, just how easy would that to remember that.
  • No transaction fee for money transfer from Airtel to Airtel numbers within Airtel Bank.
  • Customers will be covered under Accidental Insurance of Rs. 1 Lac with every Savings Account.
  • Leveraging Airtel’s extensive national distribution network of customers, with deep penetration in rural areas.

We won’t need to add money to our digital wallets, as it’s going to be our account only with effortless payments using the Airtel’s App, just like we do with Paytm. People won’t have to worry about much about their Bank Account details, passbooks, or any other written paperwork as they will be using their Airtel mobile number and it’s App for just about every purpose. With smartphone penetration depth in India. With India’s smartphone penetration depth to reach >40% by the year 2020, Airtel’s Payment Bank might just be what we need. But it won’t be the only one, with Paytm already trying to get it’s strings into Payment Bank’s, while other service operative might just follow the lead.

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